1. This is a Reference Application filed by the Commissioner of Central Excise, Chandigarh with reference to the Final Order Nos. A/981 to 984/97-NB, dated 12-9-1997 passed by the Tribunal in Appeal Nos. E/320, E/341-343/96-NB filed by M/s. Amrit Paper & two Others.
2. By the said order the Tribunal had, following the ratio of the Larger Bench decision in Orient Paper Mills Ltd. v. CCE and Ors.
decisions held that Modvat credit will be admissible of Felt Cloth and Wire netting used in or in relation to the manufacture of Paper and Paper Boards, including Paper products. Commissioner in the Reference Application has stated that the Department had not accepted the Tribunal decision on the said question and had filed Reference Application. The said Reference Application was accepted by the Tribunal in Order No. A/83-85/96, dated 31-10-1996. On similar issue, the Department's two other Reference Applications had also been accepted by the Tribunal and referred to the Punjab & Haryana High Court, Chandigarh for decision vide Order No. R/18/97-NB, dated 11-3-1997 (CCE, Chandigarh v. Escorts Ltd.) and RA/66/96-NB, dated 2-7-1996 (CCE, Chandigarh v. Punjab Alkalies & Chemicals).
3. The Commissioner has formulated the question of law arising out of the aforesaid Final Order of the Tribunal as under: "Whether the Tribunal is correct in allowing the availability of credit of duty paid on felt cloth and wire netting which form the part of machines, used in the manufacture of paper and paper boards, including paper products, under Rule 57A when the CEGAT's Larger Bench's decision already stands referred to the High Court vide Tribunal's Order No. A/83-85/96 dated 31-10-1996 in the case of Union Carbide of India?" 4. Shri D.K. Nair, ld. DR who appeared for the appellant Commissioner prayed for reference of the matter to the Punjab & Haryana High Court in view of the Tribunal's earlier orders referring the matter to the Hon'ble High Court.
5. Shri K.K. Anand, ld. Advocate for the respondent left it to the discretion of the Bench.
6. Considered. Having regard to the fact that the Tribunal has decided to refer the said question of law to the Hon'ble High Court, in the two instances referred to by the Commissioner and following the said precedent, we accede to prayer made in the Reference Application for referring the question formulated in the said Reference Application to the Hon'ble High Court of Punjab & Haryana.
7. Registry shall take further action in the matter in terms of the above.